Goodwill And Intangible Assets (Tables)

12 Months Ended

Oct. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table presents a summary of the net carrying value of the Company’s intangible assets (in thousands):



	October 31, 2015		November 1, 2014
Indefinite-lived intangible assets:
Goodwill	$	1,617,161	$	1,567,723
In-process research and development ⁽¹⁾	15,110		15,110
Finite-lived intangible assets:
Total intangible assets subject to amortization ^{(2), (3)}	60,513		11,548
Total intangible assets	$	1,692,784	$	1,594,381

⁽¹⁾

Acquired IPR&D is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. If the research and development effort associated with the IPR&D is successfully completed, then the IPR&D intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. The development effort on the remaining IPR&D intangible asset is expected to be completed by the first quarter of fiscal year 2016.


(2)	During the fiscal year ended October 31, 2015, the Company purchased a perpetual, nonexclusive license to certain patents for $7.8 million.


(3)	During the fiscal year ended October 31, 2015, the Company acquired $52.3 million of intangible assets related to the Company’s acquisition of two businesses. See Note 3, “Acquisitions and Divestitures,” of the Notes to Consolidated Financial Statements.

Schedule Of Goodwill Activity By Reportable Segment

The following table summarizes goodwill activity by reportable segment during the fiscal years ended October 31, 2015, and November 1, 2014 (in thousands):



	SAN Products			IP Networking Products			Global Services		Total
Balance at October 26, 2013
Goodwill	$	176,878		$	1,358,975		$	155,416	$	1,691,269
Accumulated impairment losses	—			(45,832		)	—		(45,832		)
	176,878			1,313,143			155,416		1,645,437
Impairment ⁽¹⁾	—			(83,382		)	—		(83,382		)
Divestitures ⁽²⁾	(474		)	(3,657		)	—		(4,131		)
Acquisition	—			11,475			—		11,475
Tax and other adjustments ⁽³⁾	(58		)	(1,618		)	—		(1,676		)
Balance at November 1, 2014
Goodwill	176,346			1,365,175			155,416		1,696,937
Accumulated impairment losses	—			(129,214		)	—		(129,214		)
	176,346			1,235,961			155,416		1,567,723
Acquisitions ⁽⁴⁾	—			49,458			—		49,458
Purchase accounting adjustments	—			(15		)	—		(15		)
Tax and other adjustments ⁽³⁾	(21		)	—			—		(21		)
Translation adjustments	—			16			—		16
Balance at October 31, 2015
Goodwill	176,325			1,414,634			155,416		1,746,375
Accumulated impairment losses	—			(129,214		)	—		(129,214		)
	$	176,325		$	1,285,420		$	155,416	$	1,617,161

⁽¹⁾

In the second quarter of fiscal year 2014, the Company made a strategic change in the allocation of its engineering resources by reducing its investment in engineering and sales for the hardware-based Brocade ADX products and increasing engineering investment in the software-based Brocade ADX products for Layer 4-7 applications. As a result of this change in strategy, the Company expected hardware-based Brocade ADX and related support revenue to be negatively impacted. Based on these changes in estimates, the Company recognized an impairment charge during the second fiscal quarter of 2014 because the book value of its Application Delivery Products (“ADP”) reporting unit net assets, which includes the Brocade ADX products, exceeded the estimated fair value of these assets. The goodwill amount related to the Company’s other reporting units was not impacted.


⁽²⁾	The goodwill disposed relates to the sale of the Company’s network adapter business. See Note 3, “Acquisitions and Divestitures,” of the Notes to Consolidated Financial Statements.


⁽³⁾	The goodwill adjustments were primarily a result of tax benefits from the exercise of stock awards of acquired companies.


⁽⁴⁾	The goodwill acquired relates to the Company’s acquisition of two businesses, which is gross of the adjustments recorded during the purchase price allocation period. See Note 3, “Acquisitions and Divestitures,” of the Notes to Consolidated Financial Statements.

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following table presents the fair values and weighted-average useful lives of the acquired finite-lived intangible assets (in thousands, except for weighted-average useful life):



	Fiscal Year Ended
	October 31, 2015			November 1, 2014			October 26, 2013
	Fair Value		Weighted- Average Useful Life (in years)	Fair Value		Weighted- Average Useful Life (in years)	Fair Value		Weighted- Average Useful Life (in years)
Trade names	$	500	6.00	$	130	5.00	$	460	4.00
Core/developed technology	28,450		4.04	1,710		5.00	1,040		3.00
Customer relationships	22,030		7.93	—		—	1,080		5.00
Non-compete agreements	240		2.00	—		—	810		4.00
Patents with broader applications ⁽¹⁾	1,040		15.00	—		—	—		—
Total intangible assets	$	52,260	5.91	$	1,840	5.00	$	3,390	4.01


⁽¹⁾	These patents were acquired by the Company as part of an acquisition in fiscal year 2015. The potential use of these patents extends beyond their use in the core/developed technology acquired.

Schedule Of Finite-Lived Intangible Assets

The following tables present details of the Company’s finite-lived intangible assets (in thousands, except for weighted-average remaining useful life):



	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
October 31, 2015
Trade names	$	1,090	$	415	$	675	4.36
Core/developed technology	40,530		9,605		30,925		3.49
Patent portfolio license ⁽¹⁾	7,750		849		6,901		17.74
Customer relationships	23,110		2,484		20,626		7.18
Non-compete agreements	1,050		664		386		1.17
Patents with broader applications	1,040		40		1,000		14.38
Total intangible assets	$	74,570	$	14,057	$	60,513	6.55



	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (in years)
November 1, 2014
Trade names	$	590	$	227	$	363	3.00
Core/developed technology	12,080		1,964		10,116		4.30
Customer relationships	1,080		427		653		3.01
Non-compete agreements	810		394		416		2.01
Total intangible assets ⁽²⁾	$	14,560	$	3,012	$	11,548	4.10

⁽¹⁾

The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily based on the mix of expiration patterns of the individual patents included in the license.


⁽²⁾	During the fiscal year ended November 1, 2014, $477.3 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet.

Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations

The following table presents the amortization of finite-lived intangible assets included on the Company’s Consolidated Statements of Income (in thousands):



	Fiscal Year Ended
	October 31, 2015		November 1, 2014		October 26, 2013
Cost of revenues	$	7,640	$	8,010	$	39,731
General and administrative ⁽¹⁾	849		—		—
Other operating expense	2,556		10,280		54,256
Total	$	11,045	$	18,290	$	93,987


⁽¹⁾	The amortization is related to the $7.8 million of perpetual, nonexclusive license to certain patents purchased during the fiscal year ended October 31, 2015.

Schedule Of Estimated Future Amortization Of Intangible Assets

The following table presents the estimated future amortization of finite-lived intangible assets as of October 31, 2015 (in thousands):



Fiscal Year	Estimated Future Amortization
2016	$	14,774
2017	14,305
2018	9,785
2019	6,259
2020	5,168
Thereafter	10,222
Total	$	60,513